How does liability of origin influence cross-border acquisition completion? Evidence from Chinese firms

Purpose The environment of international business (IB) and the capabilities of emerging market multinational enterprises (EMNEs) as well as their home countries have changed significantly, leading to some new features of liability of origin (LOR). This paper aims to extend the LOR literature by particularly focusing on the LOR of Chinese multinational enterprises (MNEs) and by taking into account the heterogeneity among industries and across individual MNEs. Design/methodology/approach Based on the stereotype content model and organizational legitimacy perspective, this study explores how LOR influences Chinese MNEs’ cross-border acquisition completions. Several hypotheses were tested by using a binary logistic regression model with panel data techniques based on data of 780 Chinese MNEs’ acquisition deals between 2008 and 2018. Findings The results of this study show that when the competence dimension of China’s LOR is perceived as high in the host country, Chinese MNEs are less likely to complete cross-border acquisitions. Moreover, deals are less likely to be completed when the warmth dimension of China’s LOR is perceived to be low. Global experience and the foreign-listed status of individual Chinese MNEs can alter the relationship between the LOR and deal completions. Originality/value This study advances and enriches the LOR research. It shows that a high level of competence in the home country has led to LOR for Chinese MNEs rather than the low level of competence proposed by existing LOR studies; and the LOR for Chinese MNEs is also determined by the perceived low level of warmth in the home country resulting from the geopolitical conflicts between two countries. In addition, the LOR suffered by EMNEs could vary based on certain industry- and firm-level characteristics. The findings of this study provide important practical implications for emerging economy governments and for firms intending to go abroad.

How the Human Resource Practices of Chinese MNEs in Africa Create Economic Growth and Livelihood Options

The purpose of this paper is to critically analyze the economic development impact of multinational enterprises (MNEs) in developing countries. In particular, the relationship between MNEs' developmental effect on economic growth and poverty reduction and their use of human resource management (HRM) practices will be examined. The regional focus will be on Chinese MNEs in Africa. The paper is conceptual in nature by analyzing relevant key literatures, investigating cases of Chinese MNEs in Africa, and finally deriving a systematic conceptual framework.

The Co-Evolution of Global Legitimation and Technology Upgrading: The Case of Huawei

This study explores the underlying relationship between acquisition of global legitimacy and the search for technology upgrading by Chinese multinational enterprises (MNEs). Using Huawei’s investment in Russia, Kenya, the United Kingdom and Canada as an in-depth case study, we observe that through corporate social responsibility (CSR) activities in foreign markets and engaging with local community, Chinese MNEs can acquire global legitimacy and gradually catch up with industry leaders. However, the process of global legitimation and innovation continues to evolve. We find that, together with engaging in CSR activities, acquisition of sophisticated knowledge and creation of innovation bring more legitimacy challenges to these firms. Thus, we suggest that Chinese MNEs’ global legitimation and innovation processes are closely coupled and mutually influential, resulting in co-evolution.

How do the institutions matter for MNE subsidiaries’ CSR in host countries? Evidence from Chinese overseas subsidiaries

Based on the institutional perspective, this article examines whether institutional pressures in home and host countries affect multinational enterprise (MNE) subsidiaries’ corporate social responsibility (CSR) practices and whether the institutional distance between home and host countries moderates these relationships. We collect data from 185 Chinese MNEs’ 349 foreign subsidiaries operating in 27 host countries and conduct a cross-classified multilevel model analysis of the data. The findings indicate that institutional pressures in home and host countries significantly affect the CSR practices of the MNE subsidiaries operating in host countries. Also, we find that the formal and informal institutional distances between the home and host countries exert different interaction effects on these CSR practices. The findings from this study offer useful implications for MNEs’ social strategies for sustainability. JEL CLASSIFICATION: G38, L16, M16, Q17

CSR reporting by Chinese and Western MNEs: patterns combining formal homogenization and substantive differences

In light of the growing economic might and intensification of global activities of Chinese multinational enterprises (MNE), this paper looks into the nature of their corporate social responsibility (CSR) reporting. CSR communications of the largest Chinese companies and their counterparts from advanced economies have been compared based on quantitative and qualitative content analysis of CSR reports. A mixed method approach has been rarely utilized in the analysis of CSR reporting. To analyze CSR reports the paper uses a two-dimensional conceptual framework based on Wood (Acad Manag Rev 16:691–717, 1991); Jamali and Mirshak (J Bus Ethics 72:243–262, 2007) and Lockett, Moon and Visser (J Manag Stud 43:115–136, 2006); Moon and Shen (J Bus Ethics 94:613–629, 2010). The findings indicate that quantitatively Chinese MNEs display patterns of CSR reporting comparable to major MNEs in developed economies. This paper argues that just like MNEs from developed economies Chinese MNEs use a global CSR reporting template as a convenient tool to align and harmonize various isomorphic pressures. However, qualitatively substantive discrepancies in content have been also identified due to national or other contextual characteristics. The analysis reveals a complex picture of national and international isomorphic forces at play. The paper addresses the lack of consensus concerning convergence/divergence of CSR reporting across the globe and, more specifically, between developed economies and emerging markets. In this respect this paper responds to the general call for research looking into various aspects of business operations, including CSR reporting, of MNEs from emerging markets.

Post-acquisition control strategy and cross-border acquisition performance of Chinese MNEs: a fsQCA approach

PurposePost-acquisition control is a crucial factor affecting acquisition performance. We investigate how post-acquisition control strategy affects cross-border acquisition performance of Chinese multinational enterprises (MNEs) through a configurational perspective.Design/methodology/approachBased on 70 cross-border acquisition cases by Chinese MNEs, we adopt fuzzy-set qualitative comparative analysis (fsQCA) to study the combined effects of strategic control, operational control, institutional distance, cultural distance, relative capacity and business relatedness on the cross-border acquisition performance.FindingsOn the basis of fuzzy set analysis of multiple interdependent factors, we identify six configurations that are conductive to achieving high cross-border acquisition performance and two configurations that relate to the absence of high performance, thus shedding light on the casually complex nature of performance drivers of acquisitions.Originality/valueThis study provides a holistic, configurational approach to investigating cross-border acquisition performance by emerging market firms. Our results provide some compelling evidence that accounts for the causal complexity of post-acquisition control strategies and acquisition outcomes in the context of emerging economies.